1. BUSINESS LAW

2. WHAT IS A CONTRACT? An agreement enforceable by law
(Section 2 (h) contract act 1872.

3. ESSENTIAL ELEMENTS OF A CONTRACT?
Lawful consideration
Free consent
Lawful agreement
Offer & acceptance
Contractual Capacity
Lawful Object
Possibility of performance
Certainty of Term
Legal Formality

4. VALID CONTRACT?
An contract which satisfies all the legal requirement provided for under sec-10

5. VOID CONTRACT? An agreement which ceases to be enforceable by law.
An agreement which is valid in beginning but at later stage it becomes void subsequently due to impossibility of performance.
An agreement void from the beginning is known as ‘void ab in initio’. Then we can not use the term void contract.
eg. An agreement with a minor.
Section 2 (j)

6. WHICH ARE VOID CONTRACT?
Mistake of facts – sec. 20
Unlawful object sec 23
Agreement without consideration sec. 25
Agreement in restraint of marriage sec. 26
Agreement in restraint of trade sec. 27
Agreement against legal proceeding: sec 28.

7. VOIDABLE CONTRACT?
An agreement which is enforceable at the option of one or more parties but not at the option of other party is called voidable contract.
The right of rescind has to be exercised within the reasonable time and before the third party acquire the rights under contract.
Sec. 2 (i)

8. WHICH ARE VOIDABLE CONTRACTS?
CONTRACTS MADE UNDER COERCION, UNDUE INFLUENCE, FRAUD, MISREPRESENTATION ETC.

9. IS VOID CONTRACT SAME AS ILLEGAL CONTRACT?NO
ALL ILLEGAL CONTRACTS ARE VOID CONTRACTS BUT ALL VOID CONTRACTS ARE NOT ILLEGAL CONTRACTS.

10. ILLEGAL CONTRACT
An agreement is illegal when it is against the law of land.
An agreement to commit the fraud & Crime.
Ram Rama Sewa Sansthan

11. UNENFOCEABLE CONTRACT
A contract which is valid but due to some technical problem it becomes invalid.
Technical problems are:
Absence of evidence
Expiry of period
Ram Rama Sewa Sansthan

12. OFFER OR PROPOSAL
When a person signifies to another his willingness to do with a view to obtaining tha assent of the other to do such act, he said to make a proposal or offer.
One who make an offer is called offeror , to whom it is made is called oferee
Ram Rama Sewa Sansthan

13. ESSENTIAL OF OFFER An offer may be general or specific
It should have intention to create legal obligation
It should be definite and certain
An invitation to offer is not offer
(advertisement for tender for sale of goods by auction)
Ram Rama Sewa Sansthan

14. Acceptance must be provoked by offer.
Acceptance must be given before stipulated period of timer.
Provisional acceptance is not acceptance unless final order is not given.
Ram Rama Sewa Sansthan

15. An offer must be communicated.
Term and Condition of offer must be communicated.
Two identical offer(cross offer) do not make a contract.
Acceptance should be communicated.
Acceptance should be as per prescribed form.
Ram Rama Sewa Sansthan

16. HOW MANY TYPES OF OFFERS CAN YOU MENTION?
GENERAL OFFER
SPECIAL OFFER
CROSS OFFER
COUNTER OFFER
STANDING OFFER
Ram Rama Sewa Sansthan

17. I MAKE AN OFFER TO RAM TO BUY HIS HOUSE IN RS
I MAKE AN OFFER TO RAM TO BUY HIS HOUSE IN RS. 5 LAKH, HE MAKES ANOTHER OFFER TO SELL THE HOUSE AT RS. 6 LAKH. WHAT IS HIS OFFER?
IS IT CROSS OFFER = NO
IT IS COUNTER OFFER
Ram Rama Sewa Sansthan

18. I MAKE AN OFFER TO RAM TO SELL MY HOUSE AT RS
I MAKE AN OFFER TO RAM TO SELL MY HOUSE AT RS. 5 LAKH, RAM ALSO MAKES AN OFFER TO BUY MY HOUSE AT RS. 5 LAKH. I SEND MY OFFER BY POST, HE SENDS HIS OFFER BY . WHAT OFFERS ARE THESE?
CROSS OFFER.
Ram Rama Sewa Sansthan

19. I TELL RAM THAT HE MAY BUY MY HOUSE AT ANY TIME IN FUTURE AT RS. 5 LAKH. WHAT TYPE OF OFFER IS IT?
STANDING OFFER
Ram Rama Sewa Sansthan

20. ESSENTIAL CHARACTERISTICS OF AN OFFER?
DEFINITE
EXPRESSED OR IMPLIED
OFFER IS NOT INVITATION TO OFFER
CERTAIN
INTENED TO CREATE LEGAL RELATIONSHIP
OFFER MUST BE COMMUNICATED
MUST NOT CONTAIN A TERM – THE NON COMPLIANCE OF WHICH WILL AMOUNT TO AGREEMENT
Ram Rama Sewa Sansthan

21. I GIVE AN ADVERTISEMENT : “ I HAVE A COMPUTER TO SELL” IS IT AN OFFER?
IT IS AN INVITATION TO OFFER
Ram Rama Sewa Sansthan

22. I MAKE AN OFFER: “IF YOU DON’T REPLY, I SHALL ASSUME THAT YOU WILL BUY MY HOUSE IN RS. 5 LAKH” IS IT AN OFFER? NO
Ram Rama Sewa Sansthan

23. I MAKE AN ADVERTISEMENT THAT I SHALL SELL MY HOUSE FOR RS
I MAKE AN ADVERTISEMENT THAT I SHALL SELL MY HOUSE FOR RS. 5 LAKH, TO THE PERSON WHO HELPS ME IN MY LEGAL DISPUTE. IS IT AN OFFER.
YES – OFFER CAN BE CONDITIONAL ALSO.
Ram Rama Sewa Sansthan

24. I MAKE AN OFFER – “I WANT TO SELL MY HOUSE AT RS. 5 LAKH
I MAKE AN OFFER – “I WANT TO SELL MY HOUSE AT RS. 5 LAKH. IN CASE ANY PERSON IS INTERESTED, HE SHOULD SEND THE REPLY BY .” MOHAN REPLIES BY POST. IS IT VALID ACCEPTANCE?
NO – THE ACCEPTANCE HAD TO BE THROUGH ONLY (IT WAS CONDITIONAL OFFER).
Ram Rama Sewa Sansthan

25. WHAT IS ACCEPTANCE?
WHEN A PERSON CONVEYS HIS WILLINGNESS / ASSENT TO OTHER PERSONS’S OFFER (SEC. 2 (B))
Ram Rama Sewa Sansthan

26. ELEMENTS OF ACCEPTANCE?
MUST BE ABSOLUTE AND UNQUALIFIED
MUST BE COMMUNICATED
MUST BE MADE IN PRESCRIBED MANNER
MUST BE WITHIN TIME
MAY BE DONE BY CONDUCT ALSO
Ram Rama Sewa Sansthan

27. RAM SENDS ME AN OFFER REQUESTING TO SELL GOODS OF RS. 5000
RAM SENDS ME AN OFFER REQUESTING TO SELL GOODS OF RS I DON’T SEND ACCEPTANCE. I SEND THE GOODS. IS IT VALID ACCEPTANCE?
YES – ACCEPTANCE CAN BE BY CONDUCT ALSO.
Ram Rama Sewa Sansthan

28. I SEND AN OFFER TO JITENDRA BY POST
I SEND AN OFFER TO JITENDRA BY POST. I SEND IT ON 1 JULY BUT JITENDRA RECEIVES IT ON 10 JULY. WHEN DID I MAKE AN OFFER?
10 JULY
Ram Rama Sewa Sansthan

29. IN THE PREVIOUS QUESTION, WHEN CAN I WITHDRAW MY OFFER AND HOW?
BEFORE 10 JULY – MY WIDHDRAWAL MUST REACH BEFORE MY OFFER – BY ANY MEANS
Ram Rama Sewa Sansthan

30. Contract by Post
Under English law proposer is legally bound by the acceptance effected through postal medium when the letter is prepared, addressed, stamped and mailed even though it is delayed or lost in transit.
Indian Law lays down that the communication of an acceptance is complete as against the proposer when it is put in the course of transmission to him so as to be out of power of the acceptor; as against the acceptor when it comes to the knowledge of the proposer.
Ram Rama Sewa Sansthan

31. Termination of Offer Lapse a passage of time/reasonable time
death of the proposer
Failure to fulfill a condition
Rejection(from offeror, may be expressed or implied)
Destruction of subject matter
Revocation(Withdrawal at any time before the letter is communicated, not in England)
Ram Rama Sewa Sansthan

32. WHAT IS CONSIDERATION?
AT THE DESIRE OF PROMISOR, THE PROMISEE OR ANY OTHER PERSON HAS DONE SOMETHING OR ABSTAIN FROM DOING OR DOES OR ABSTAINS FROM DOING OR PROMISES TO DO OR ABSTAIN FROM DOING SOMETHING – SUCH ACT / ABSTINANCE IS CALLED CONSIDERATION FOR PROMISE
SEC. 2 (D)
Ram Rama Sewa Sansthan

33. ELEMENTS OF CONSIDERATION?
Must be at the desire of promisor
May be present future or past
Need not be adequate.
Must be real
May be for doing something or for not doing something
Should be valuable
It should be certain and lawful
Ram Rama Sewa Sansthan

34. Exception to the rule ‘no consideration, no contract’
Agreement made an account of natural love and affection
Promise to compensate voluntary services
A completed gift
Agency
Remission
Contribution to charity
Ram Rama Sewa Sansthan

35. Privity of contract
A person who is not a party to a contract can not claim any rights under the contract even though contract may be for his benefit. Such person is known as a stranger to the contract.
Ram Rama Sewa Sansthan

36. If I tell a police officer to protect me and in exchange to that I offer to pay him Rs Is it valid consideration?
It is the duty of police officer to protect. Therefore such consideration is not valid.
Ram Rama Sewa Sansthan

37. I tell Jitendra to give me his house and in return I promise to show him an elephant with horns. Is it a valid consideration?
No – we know that elephent with horn is not possible – so this is not a valid consideration.
Ram Rama Sewa Sansthan

38. Which are the agreements, which are valid without consideration?
Based on natural love
Based on past voluntary services
Time barred debt
Gifts
(In other cases, agreement without consideration is void as per section 25).
Ram Rama Sewa Sansthan

39. A husband promises to give his car to his wife without consideration
A husband promises to give his car to his wife without consideration. Is this agreement valid?
Yes – based on natural love
Ram Rama Sewa Sansthan

40. There was an agreement between Ram and Shyam, can Hari go to court to enforce this agreement?
In some cases third party can also go to the court to enforce the agreement. These are the matters where third party is involved in the matter as beneficiary.
Ram Rama Sewa Sansthan

41. When can third party sue for agrement?
Beneficiary in the case of trust
A female member in the case of HUF agremeents for provision of marriange expenses
In cse of estoppel by acknowledgement
Where benefit from contract have been assigned to some other person
Ram Rama Sewa Sansthan

42. Contractual Capacity Age of maturity Sound mind
Not disqualified by law to which they are subject
Ram Rama Sewa Sansthan

43. A Minors Indian Majority Act 1875-the age of majority is18 yrs
If a guardian appointed by a court then the age of majority is 21 yrs
Ram Rama Sewa Sansthan

44. Effect of minors agreement
No estoppels against minor
No liability in contract
Doctrine of restitution
Beneficial contract
Ratification(can’t be made valid by subsequent ratification)
Liability for necessaries
Person of unsound mind
Liabilities for necessary
Ram Rama Sewa Sansthan

45. THANKS
Sachin Raj Singh Chauhan
Researching The World